I was recently asked my opinion on if it was better to have bad credit or be in Chexsystems when applying for a New or Second Chance Checking Account.

To be honest, neither are good. But if I had to choose I would say being in Chexsystems is way better than having bad credit. You see with today’s economy banks are being more protective than ever and their requirements are stronger than ever. Meaning, if you have bad credit you most likely will be denied a checking account.

Now people with bad credit will have those marks for seven years. People who are in Chexsystems well, only 5. Still, 5 years or 7 years that is alot of years.  Also, people who are in Chexsystems the banks tend to budge a little more better toward you after you have been listed for about 3 or 4 years. If they really want your business and they pull a Chexsystems report and you have been listed for 3 or 4 years you may have a really good chance of that bank opening the account for you. That is, if no other bank listed you after your first Chexsystems Mark.

I had one email where someone said he was being screwed every which way. He just got his bad credit cleaned up and ended up in Chexsystems. So not only did he have to wait 7 long years to get a checking account right when he went to apply he was in Chexsystems now and stuck there for another 5 years. That would be a total of 12 years without a bank account. That is a LONG time of no banking privileges.

I cannot imagine that. But I’m sure this guy had many the opportunity to get his account into good standing because the banks most certainly let you know that your account was overdrafted by letter or phone.  All banks send overdraft letters because they have to inform you of the fee as well.

So there’s your answer.  Both stink to be in. But being in Chexsystems is way better than having bad credit. What do you think? Would you rather go with the bad credit? Or be in Chexsystems?